From Department of the Environment, Climate and Communications
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On 15 December 2021 the European Commission published its new hydrogen and gas market decarbonisation package entitled "Proposal for a Directive of the European Parliament and of the Council on common rules for the internal markets in renewable and natural gases and in hydrogen". The proposals are described in the Commission’s press release.
These proposals seek to revise and update Directive (EC) 2009/73 (the “Gas Directive”) and Regulation (EC) 715/2009 (the “Gas Regulation”)
Prior to the publication of these proposals the Commission had undertaken a public consultation.
The hydrogen and gas market decarbonisation package is a set of legislative proposals to decarbonise the EU gas market by facilitating the uptake of renewable and low carbon gases, including hydrogen, and to ensure energy security for all citizens in Europe.
The proposals aim to create the conditions for a shift from fossil natural gas to renewable and low-carbon gases, in particular biomethane and hydrogen, and strengthen the resilience of the gas system.
One of the main aims is to establish a market for hydrogen, create the right environment for investment, and enable the development of dedicated infrastructure, including for trade with third countries.
The new market rules will be applied in two phases, before and after 2030, and will cover access to hydrogen infrastructures, separation of hydrogen production and transport activities, and tariff setting. A new governance structure in the form of the European Network of Network Operators for Hydrogen (ENNOH) will be created to promote a dedicated hydrogen infrastructure, cross-border coordination and interconnector network construction, and elaborate on specific technical rules.
The new rules are intended to make it easier for renewable and low-carbon gases to access the existing gas grid, by removing tariffs for cross-border interconnections and lowering tariffs at injection points. They also create a certification system for low-carbon gases, which will ensure a level playing field in assessing the full greenhouse gas emissions footprint of different gases and allow Member States to effectively compare and consider them in their energy mix.
Another priority of the package is consumer empowerment and protection. Mirroring the provisions already applicable in the electricity market, consumers may switch suppliers more easily, use effective price comparison tools, get accurate, fair and transparent billing information, and have better access to data and new smart technology.
On 15 December 2021 the European Commission also published its proposals for a regulation on Methane Emissions, as described in their press release.
Prior to the publication of these proposals, the Commission had undertaken a public consultation.
This proposal follows on from the EU Methane Strategy, which was published in October 2020, and is part of the European Green Deal and the 'Fit for 55' package – a series of climate legislative proposals aimed at reducing greenhouse gas emissions by 55 percent by 2030.
Methane is a powerful greenhouse gas, second only to carbon dioxide in its overall contribution to climate change and responsible for about a third of current climate warming. Although it remains in the atmosphere for a shorter period than carbon dioxide (10-12 years before oxidizing into carbon dioxide that continues to trap heat), on a molecular level, methane is a far more powerful climate forcer (with a global warming potential of 28 times that of carbon dioxide over 100 years and of 86 over 20 years).
The legislative proposal on methane emissions reduction in the energy sector would establish a new EU legal framework that requires the oil, gas and coal companies within the EU to measure, report and verify methane emissions. It also proposes strict rules to detect and repair methane leaks and to limit venting and flaring (the release of natural gas from production facilities). The proposal relates to methane emissions from the energy sector and does not relate to methane emissions from other sectors such as agriculture.
In addition to measures related to methane emissions within the EU, the proposed Regulation also includes global monitoring tools ensuring transparency of methane emissions from imports of oil, gas and coal into the EU. Importers of fossil fuels would be required to submit information about how their suppliers perform measurement, reporting and verification of their emissions and how they mitigate those emissions.
The European Commission will establish two transparency tools that will show the performance and reduction efforts of countries and energy companies across the globe in curbing their methane emissions:
As a further step, to tackle emissions of imported fossil fuels along the supply chain to Europe, the European Commission plans to engage in a diplomatic dialogue with our international partners and review the methane regulation by 2025 with a view to introducing more stringent measures on fossil fuels imports once all data is available.
This consultation is being held to gather the views of stakeholders and interested parties which will inform Ireland’s position on the proposals.
All relevant documentation is available online at the Commission’s website as detailed above.
The closing date for submissions has been extended to 5.30pm 22 April 2022
Submissions should include "New EU framework to decarbonise gas markets" in the subject field and be sent by email to gasconsultation@decc.gov.ie or by post to:
Wholesale Electricity and Gas Policy Division
Department of the Environment, Climate and Communications
29-31 Adelaide Road
Dublin 2
D02 X285
In cases where responses exceed five pages, respondents are advised to include a concise executive summary.
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